Voters to decide on tobacco fund cap power

Oklahoma legislators will ask voters' permission to dip into the state's Tobacco Settlement Endowment Trust.

The Oklahoma Senate gave final approval to send to the ballot a measure that seeks to reduce the amount of settlement funds going to TSET from 75% to 25%.

Currently, the trust receives 75% of the state's annual payment from the 1998 master settlement agreement with tobacco companies. The remaining 25% goes to the Legislature and the attorney general's office.

Senate Joint Resolution 27, which will appear on the ballot as State Question 814, will ask voters to approve flipping those percentages so the Legislature controls the bulk of 75% of the settlement payments.

Two decades ago, Oklahoma voters had the foresight to constitutionally protect the state' s share of t he agreement with Big Tobacco, said TSET Executive Director Julie Bisbee.

"The constitutionally protected endowment enables the agency to develop long term plans that consider the needs of Oklahomans today and for future generations," she said. The Legislature's passage of S JR 27 lets Oklahoma voters consider reducing the annual amount deposited into the state's endowment.

"Now more than ever, as Oklahoma and the world grapple with the coronavirus pandemic, it is vital to address chronic underlying conditions that put people most as risk such as diabetes, heart disease and lung disease. TSET will continue to work to address the leading causes of preventable death."

The TSET trust currently holds about $1.3 billion, and the ballot measure will not touch those funds, said author Sen. Kim David, R-Porter. TSET can only spend the interest earnings off the trust.

Should voters approve the measure, the Legislature will use the money to match federal dollars for Medicaid, David said.

There have been discussions that the funds could be used to help the state cover the costs of Medicaid expansion, either through Gov. Kevin Stitt's SoonerCare 2.0 plan or State Question 802. David has also expressed concerns that the state has underestimated the costs of Medicaid expansion.

David said unlocking additional TSET funds could help prevent t he state from having to cut health care services due to the economic fallout of the coronavirus pandemic.

"With the budget situation that we have now ... the last thing we want to do right now is next year or the year after look at possible budget cuts to health care or the provider rate cuts that we've had in the past," she said. "We want to make sure that we can continue to support all health care in Oklahoma."

This is not the first time state legislators have tried to change how T SET operates.

Stitt, in his State of the State speech t his year, called for reforming TSET by directing future funds to rural health care. The Legislature can send items to the ballot without the governor's input.

Several public health groups on Friday criticized the Legislature's attempt to overhaul TSET funding. The American Heart Association, American Lung Association, American Cancer Society Cancer Action Network, Preventing Tobacco Addiction Foundation and the Campaign for TobaccoFree Kids said redirecting TSET funds will have a "devastating" impact on the state's public health.

“Smoking continues to be the No .1 cause of preventable death in Oklahoma and is responsible for 31% of the state's cancer deaths," they said in a joint statement. "TSET is the state's primary source of tobacco control and prevention funding. The trust also provides crucial access to healthcare."